The practice of reporting shariah non-compliant income in the Annual Financial Report of Islamic commercial banks in Malaysia = Pelaporan pendapatan tidak patuh Syariah dalam Laporan Kewangan Tahunan Bank Perdagangan Islam di Malaysia

Bank Negara Malaysia (BNM) had introduced a policy document of Financial Reporting for Islamic Banking Institutions, which came into effect on 1st January 2018. This policy aimed to facilitate the assessment of Islamic financial institutions’ financial positions, performance, and Shariah compliance. However, the disclosure of Shariah committee report of a few Islamic banks may not have fulfilled the standard specified by BNM in terms of reporting the Shariah non-compliance incomes in their annual financial reports. This study therefore aims to investigate the extent of the application of BNM policy document for Islamic banks, with special focus on the practice of Islamic commercial banks in reporting Shariah non-compliant incomes in their annual financial reports. The qualitative method is adopted as the main research methodology of this study in order to gain information from the banks’ annual financial reports, as well as related research in the field. The findings show that nine out of sixteen Islamic commercial banks in Malaysia have fulfilled the standard provided by Bank Negara in reporting Shariah non-compliant incomes with complete detail in their annual financial reports. However, the remainder of the Islamic commercial banks did not properly disclose their Shariah non-compliant incomes in their report. ************************************************************************** Bank Negara Malaysia (BNM) telah memperkenalkan Polisi bagi Pelaporan Kewangan untuk Institusi Perbankan Islam yang berkuatkuasa pada 1 Januari 2018. Polisi ini bertujuan untuk memudahkan penilaian terhadap kedudukan kewangan, prestasi dan pematuhan Syariah bagi institusi kewangan Islam. Walau bagaimanapun, pelaporan daripada jawatankuasa Penasihat Syariah beberapa bank Islam mungkin tidak memenuhi piawaian yang ditetapkan oleh BNM dari segi melaporkan pendapatan tidak patuh Syariah dalam laporan kewangan tahunan mereka. Oleh itu kajian ini bertujuan untuk mengkaji sejauh mana bank-bank Islam mematuhi Polisi yang ditetapkan oleh BNM, khusus kepada pelaporan Bank Perdagangan Islam di Malaysia terhadap pendapatan tidak patuh Syariah dalam laporan kewangan tahunan mereka. Kaedah kualitatif digunakan sebagai metodologi penyelidikan utama kajian ini untuk mendapatkan maklumat daripada laporan kewangan tahunan bank, serta kajian yang berkaitan. Hasil kajian menunjukkan bahawa sembilan daripada enam belas bank Perdagangan Islam di Malaysia telah memenuhi piawaian yang disediakan oleh Bank Negara dalam melaporkan pendapatan tidak patuh Syariah dengan terperinci dan lengkap dalam laporan kewangan tahunan mereka. Walau bagaimanapun, bank Perdagangan Islam yang selebihnya tidak melaporkan pendapatan tidak patuh Syariah mereka dalam laporan tahunan. Penyelidikan ini akan menyumbang kepada para pengamal Bank Perdagangan Islam dari segi menyediakan maklumat yang telus mengenai urusan perniagaan dan kewangan

Shariah screening methodology of Securities Commission Malaysia: an analytical fiqh study

Shariah Screening Methodology is a benchmark adopted by Securities Commission Malaysia in order to identify which listed companies are Shariah compliant. Historically, Shariah Screening Methodology of SC has gone several revisions, of which the latest methodology was revised in November 2013. The study intends to find what was being revised and the reasons behind this revision. In addition, it reviews the differences between the SC benchmark and other international benchmarks formulated by AAOIFI, Dow Jones and FTSE benchmark. This research discusses the opinions of Muslim scholars on the issue of companies with mixed income and the need for purification of the said income. Furthermore, this study identifies the Shariah rules and principles used by Securities Commission to develop and revise the benchmark. The study concludes that the Securities Commission’s Shariah Screening Methodology is the least stringent among other international benchmarks studied, but it still is an acceptable benchmark

The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts

Wa‘d (promise) is a concept that is frequently applied in various Islamic financial products. Although this concept has been used widely in Islamic financial products, as a result of the arising Sharī‘ah issues, wa‘d especially wa‘d mulzim (binding promise) in some contemporary practices towards contracts of Islamic financial products, remains a debatable practice among some Sharī‘ah scholars. This research aims to analyse some Sharī‘ah issues pertaining to the application of the wa‘d mulzim in the Islamic finance industry, especially the issue of wa‘d mulzim in sukūk contracts, particularly in partnership-based contracts which are sukūk muḍārabah, and sukūk mushārakah concepts. Two aspects are particularly emphasized. First, wa‘d can be binding in certain conditions, but to legally enforce this concept, there remain disputes and controversial discussions among scholars. Second, this study also discusses the issues of “promise to buy” or “promise to sell” (the asset) at a certain “price” i.e. the price at the same nominal value at which the bond was issued. Hence, this research will try to analyse the opinions of the scholars, certain related fatwas, Sharī‘ah resolutions and guidelines to understand the applicability of the binding promise towards Islamic financial products and ensure that the application of the binding promise is in line with the Sharī‘ah requirements

Maqasid Al-Shariah dalam perlaksanaan waqaf

Apakah yang dimaksudkan dengan maqasid syariah, apa itu wakaf,apakah objektif pensyariatan wakaf dan apakah faedah memahami objektif pensyariatan wakaf? Kepentingan memahami objektif pensyariatan wakaf bertitiktolak daripada fakta bahawa hukum-hakam berkaitan wakaf asasnya adalah persoalan ijtihad. Oleh sebab itu, memahami objektif pensyariatan wakaf akan dapat membantu para mujtahid menerangkan hukum-hakam berkaitan wakaf dengan mudah

الشروط الجزائية في عقد الإجارة المنتهية بالتمليك = The penalty clauses in leasing contract which ends with ownership (al-Ijārah al-Muntahiyah bi al-Tamlīk)

The study of penal clauses is one of the most important aspects that should be jurisprudentially studied and highlighted. This is because in their contracts, most of the Islamic banks have stipulated several penal conditions to preserve their financial rights, achieve guarantees, reduce their risks in dealing with customers, address the problem of procrastination in debt settlement and financial obligations. No contract exists without a set of penal clauses, such as the condition of penalty for delay in the event of late payment, the requirement that the expenses of the lawsuit should be paid by the procrastinator of debt and other conditions. There is an urgent need to study these penal conditions and identify the extent to which they agree or disagree with the rulings of Islamic Shariah so that the transactions of Islamic banks can be free of forbidden or suspicious transactions, especially those in which there is ribā or suspicion of ribā. This paper is an attempt to highlight the position of Sharia on the penal conditions applied in the Ijārah contract that leads to ownership